Rci Hospitality Holdings, Inc. · NASDAQ:RICK
Rci Hospitality — NobleCon18 (April 2022)
15 slides from Rci Hospitality's conference presentation, Apr 20, 2022
Slide 1: Building a portfolio of well-managed, high cash-flowing nightclubs and restaurants
Building a portfolio of well-managed, high cash-flowing nightclubs and restaurants NASDAQ: RICK NobleCon18 April 20-21, 2022 www.rcihospitality.com
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include, among other things, statements regarding plans, objectives, goals, strategies, future events or performance and under
Slide 3: Non-GAAP Financial Measures
Non-GAAP Financial Measures In addition to our financial information presented in accordance with GAAP, management uses certain non-GAAP financial measures, within the meaning of the SEC Regulation G, to clarify and enhance understanding of past performance and prospects for the future. Generally, a
Slide 4: Strong Portfolio of Hospitality Venues
Strong Portfolio of Hospitality Venues Nightclubs • Accounted for 73% of sales for TTM ended 12/31/21 • 49 clubs in 13 states, many in top 20 US markets • Well-known brands with restaurants Overview • 60 well-managed, high cash-flowing bars and restaurants • Founded in 1983 • IPO on Nasdaq in 1995 G
Slide 5: Great Business Strong Cash Generation
Great Business Strong Cash Generation (TTM ended 12/31/21) ◦ High gross profit margin (85.0%) ◦ Fast cash conversion cycle ◦ Low maintenance capex ($6.3M) Barriers to Entry ◦ Clubs: Most municipal licenses tied to physical location, few municipalities issue new licenses, we have acquired most of our
Slide 6: Capital Allocation Strategy
Capital Allocation Strategy* * We may deviate from this strategy if other strategic rationale warrants • Repurchase shares when FCF yield is more than 10% • Develop critical mass, market awareness, and sell franchises • Structure investments in new units to generate annual cash on cash return of at
Slide 7: Major Transformation Pre-2016 Today
Major Transformation 7 Pre-2016 Toda y
Slide 8: Impressive Track Record & Covid Rebound
Impressive Track Record & Covid Rebound Free Cash Flow ($M)1 FCF as % of Revenues1 Diluted Weighted Average Shares Outstanding (M) 1. FY16 FCF of $18.5M reflects FCF of $20.5M less $2.0M in tax credits 2. Based on unit count at quarter end 4Q Sales / Location ($K)2 8 +16% CAGR +9% CAGR +750 BPS -2.4
Slide 9: Nightclubs: Roaring Back
Nightclubs: Roaring Back Revenues ($M) Operating Margin 9 Income from Operations ($M) Units at Year End FY21 Captured 92% of Pre- COVID FY19 Sales +370 BPS GAAP +780 BPS Non-GAAP Focus has been on improving club portfolio CAGR: +6% GAAP +8% Non- GAAP
Slide 10: Nightclubs: Significant Acquisition Opportunities
Nightclubs: Significant Acquisition Opportunities Market ◦ 2,200 clubs / ~500 meet our acquisition criteria ◦ We are one of the largest, but our market share is minimal ◦ Long-term owners interested in selling ◦ We are the acquirer of choice as the only public company in the space with access to ban
Slide 11: Harnessing New Technology to Drive Club Traffic
11 ◦ Bitcoin Acceptance ◦ Tip-N-Strip NFT Guest Benefits Program ◦ AdmireMe Mobile Friendly Website Harnessing New Technology to Drive Club Traffic www.tip-n-strip.io www.admireme.com
Slide 12: Bombshells: Next Generation Sports Bar Concept
Bombshells: Next Generation Sports Bar Concept More Upscale • Better quality food, service and experience • Big HDTVs, scratch kitchen, free Wi-Fi, USB charging stations, DJs • 4 Dayparts: Lunch, happy hour, dinner, late night • Late night drives high AUVs and industry-leading margins 12 High Impact
Slide 13: Bombshells: FY21 Record Year
Bombshells: FY21 Record Year Revenues ($M) Operating Margin 13 Income from Operations ($M) Units at Year End +32% CAGR +700 BPS +44% CAGR
Slide 14: Bombshells: Near- & Long-Term Targets
Bombshells: Near- & Long-Term Targets • Near-Term Company-Owned Locations – December 2021: Opened 11th store – March 2022: Closed on property for 12th store – Under contract to buy property for 13th store – Actively looking for 7 new sites in Austin, Phoenix and all major markets in Florida • Near-T
Slide 15: Contact Information
Corporate Office 10737 Cutten Road Houston, TX 77066 Phone: (281) 397-6730 Investor Relations Gary Fishman Steven Anreder Phone: (212) 532-3232 IR Website www.rcihospitality.com Nasdaq: RICK Contact Information